A startup offer is part salary and part investment. You're betting part of your career on a company that may grow fast, or may not exist in two years. These are the questions that let you judge the bet. Ask them in the final interview rounds or once you have an offer; nobody experienced will mind.
Funding and runway
These tell you how long the company can operate before it needs more money, and how much pressure that puts on everyone.
- When did you last raise, how much, and who led it? Public for most venture-backed startups, so it shows you did your homework. The answer anchors everything else.
- How many months of runway do you have at the planned hiring pace? The most important number. Comfortable answers are usually 18 months or more; under 12 means another raise is imminent.
- What needs to be true for the next round? Good founders know the milestones their next investors will want (revenue, growth, a product launch). Vague answers are a warning sign.
- Are you profitable or close to it, and is that a goal? Profitability changes the risk picture: a company that can live without new money has more control over its future.
Traction and the business
You are investing years of your career. Ask the questions an investor would.
- How has revenue (or usage) grown over the last year? You may get a growth rate rather than exact figures. That's fine; the direction and pace are what matter.
- Who are your best customers, and why do they buy? Specific, confident answers suggest real demand.
- What's the biggest risk to the company right now? Every startup has one. A founder who names it clearly is usually a founder worth working for.
Equity
Startup equity is usually stock options: the right to buy shares later at a fixed price. Without these numbers you can't value an offer.
- How many shares (or options) am I being offered, and how many shares are outstanding in total? Divide one by the other to get your percentage of the company. A share count alone tells you nothing.
- What's the strike price, and when was the last 409A valuation? The strike price is what you'd pay per share to exercise. It's normally set by an independent 409A valuation.
- What's the vesting schedule? Four years with a one-year cliff is standard: nothing vests in the first year, then a quarter vests at once and the rest monthly.
- How long do I have to exercise if I leave? Often 90 days, which can force a large, risky purchase when you leave. Some startups extend this to several years; it's worth asking.
- Can I exercise early? Early exercise, combined with an 83(b) election filed within 30 days, can reduce taxes later. Get advice from a tax professional before doing this.
- What's the liquidation preference on the preferred shares? In a sale, investors with preferred shares are usually paid back first. Large or participating preferences can leave little for common shareholders.
The role and the team
Startup roles change fast. Make sure you understand the starting point.
- What does success look like in the first 90 days, and after a year? Clear goals mean a real plan for the role; no answer means you may be hired before anyone knows what you'll do.
- Why is this role open now? New role tied to the round, or a replacement? Both are fine; the answer tells you about turnover and priorities.
- Who will I report to, and how often will that change? At early-stage startups your manager may change as the team grows. Ask how they've handled that before.
- How are decisions made, and how is performance reviewed? Some structure is a good sign at Series A and later; none at all can mean surprises.
Do your homework first
You can answer some of these before the interview. Every startup on JustBacked has a company page with its latest round, the amount, the date and the lead investors, plus how many roles it has open and how fast it has been adding them. A startup that raised recently and is opening roles steadily is usually in a healthy spot. For pay, compare the offer with startup salaries by funding stage.
This guide is general information, not legal, tax or financial advice. For decisions about exercising options or tax elections, talk to a qualified professional.